Mobileye acquires humanoid robot startup Mentee Robotics for $900M

In a bold move to redefine its future, Mobileye, renowned for its computer vision chips that enhance automotive safety, has announced the acquisition of Mentee Robotics for $900 million. This acquisition, revealed during CES in Las Vegas, represents a significant step in Mobileye's transition to what co-founder Amnon Shashua describes as 'Mobileye 3.0.' The deal involves an upfront payment of approximately $612 million in cash and the allocation of up to 26.2 million shares of common stock. Notably, Shashua, who is a major shareholder and the chairman of Mentee, abstained from the board's discussions to ensure transparency and integrity in the decision-making process. Both the Mobileye board and Intel, which holds a significant stake in the company, have approved the transaction, which is expected to finalize in the first quarter of the upcoming year. Shashua expressed enthusiasm about this new venture, stating that it marks an important milestone for the integration of robotics and automotive AI. He emphasized that merging Mentee's innovations in humanoid robotics with Mobileye's automotive expertise presents a unique opportunity to pioneer the development of physical AI, which encompasses both robotics and autonomous vehicles on a global scale. Mentee Robotics, founded by Shashua in 2022, will operate as an independent entity within Mobileye. This strategic alignment is expected to foster collaboration, leveraging resources and technology between the two companies. Mobileye envisions this acquisition as a way to expand its business offerings into the realm of Physical Artificial Intelligence, focusing on systems that can interpret human context and interact naturally with their surroundings. While the advantages of this acquisition may not be immediately clear, Mobileye is positioning itself in an increasingly competitive field as many companies explore humanoid robotics. The company's current revenue pipeline, primarily driven by its advancements in vehicle autonomy and driver assistance technologies, is projected to reach $24.5 billion over the next eight years, marking a significant increase of over 40% from earlier this year. However, the path to developing commercially viable humanoid robots is expected to be resource-intensive. Mentee Robotics will benefit from Mobileye's robust infrastructure, particularly in AI training and computational resources. The acquisition also follows Mobileye's recent announcement of securing a deal with a major automaker for its EyeQ6H-based Surround ADAS systems, indicating a strong market demand for its technology.